Identity Theft quickly and consistently topped the list of consumer complaints received each year by the FTC, and reported incidents nearly doubled each year since 1998. Based upon reports received from consumers, it was estimated that the number of Identity Theft cases ranged from 400,000 to as high as 750,000 per year. However, something simply did not seem right and consumer advocacy groups had long held that this number was vastly under-reported for a variety of reasons. Some of these reasons include:
1. Differing definitions of Identity Theft between law enforcement and financial institutions.
2. The FTC statistics were based only upon officially reported cases.
3. Very limited number of organizations report to the FTC database.*
*Of the roughly 18,000 law enforcement agencies nationwide, only about 1,000 or approximately 5 ½% of these agencies actually report to the FTC database.
4. Totals did not include cases involving the identities of children or the deceased.
All of these factors made obtaining accurate information about the crime of Identity Theft an extremely difficult task subject to significant speculation.
In 2003, the FTC commissioned a survey by Synovate in which it attempted to obtain more accurate and detailed statistics of the crime. The results were disturbing…
An Eye-Opener: The 2003 FTC Identity Theft Survey
Surveys are simply a statistical sampling, and their results can be interpreted and reported in a number of ways and for a variety of purposes. The 2003 FTC survey results are presented here because the FTC survey was impartial and not funded by financial institutions, credit card issuers, or other special interests. It also included many non-financial forms of the crime. Since the FTC's survey, a multitude of additional surveys have been funded and published by a wide array of organizations seeking to promote their products and services, downplay or emphasize certain key risk areas, or otherwise influence public opinion. When reviewing reported survey results, you should first make note of the organization(s) that funded the survey, understand the organization's motivations behind the report, and then observe the reported interpretations.
According to the FTC survey, in the five years following the passage of the Identity Theft Assumption and Deterrence Act of 1998, 27.3 million American consumers were victims of Identity Theft. Of those, 9.9 million consumers were victimized in 2002 alone.
The survey reported that year 2002 Identity Theft losses to businesses and financial institutions totaled nearly $48 billion. Victimized consumers reported year 2002 losses in out-of-pocket expenses attributed to resolving their cases totaled $5 billion, and nearly 33 million combined hours struggling to achieve resolution.
Some additional statistics of interest, as reported by Identity Theft victims contacted in the survey, included:
• 52% of ID Theft victims discovered that they were victimized by reviewing their own accounts. In contrast, only 26% reported that they were alerted to suspicious account activity by companies holding the accounts, such as their credit card companies or bank.
• 8% reported that they first discovered the crime when they were denied credit.
• 67% reported that existing credit cards were affected.
• 19% reported that checking or savings accounts were misused.
• 51% said they knew how their personal information was obtained. Of those, 25% said their information was lost or stolen, including lost or stolen credit cards, checkbooks or Social Security cards. 4% said the theft was a result of stolen mail.
• 15% reported that their personal information was used to obtain government documents, identification, or on tax forms.
"Criminal ID Theft", or the use of the victim's name and information by thieves when detained or apprehended by law enforcement, was the most commonly reported non-financial use of the victim's information.
The survey also reported that in the 12 months preceding the survey, 3.23 million American consumers discovered completely new accounts had been fraudulently opened in their name, including other fraudulent acts committed by the thief such as using the victim's name and information when renting an apartment or house, obtaining medical care, or obtaining employment. In these cases, business and financial institution losses were an average of $10,200 per victim and losses to individual victims averaged $1,180.
This information was provided in FTC Press Release dated September 3, 2003.
To view current Identity Theft statistics, both nationwide and on a state-by-state basis (as reported to the FTC) visit the FTC's Consumer Sentinel website accessible through FTC Reference Desk
Be Wary of the Results of Paid Surveys